Purposes
Discretionary trusts still serve a useful function, despite their original source of popularity (tax savings) having diminished in most countries. They still continue to be used for these reasons, among others:
- to protect improvident beneficiaries against creditors - as the beneficiary has no claim to any specific part of the trust fund, none of the trust fund is vulnerable to attachment by the trustee in bankruptcy of any beneficiary
- to exercise control over young or improvident beneficiaries
- to create flexibility to react to changes in circumstances
- in certain jurisdictions, a discretionary trust can be used to protect family assets from forming part of any divorce settlement.
Read more about this topic: Discretionary Trust
Famous quotes containing the word purposes:
“A culture may be conceived as a network of beliefs and purposes in which any string in the net pulls and is pulled by the others, thus perpetually changing the configuration of the whole. If the cultural element called morals takes on a new shape, we must ask what other strings have pulled it out of line. It cannot be one solitary string, nor even the strings nearby, for the network is three-dimensional at least.”
—Jacques Barzun (b. 1907)
“The new always happens against the overwhelming odds of statistical laws and their probability, which for all practical, everyday purposes amounts to certainty; the new therefore always appears in the guise of a miracle.”
—Hannah Arendt (1906–1975)
“Virtuous people are simply those who have ... not been tempted sufficiently, because they live in a vegetative state, or because their purposes are so concentrated in one direction that they have not had the leisure to glance around them.”
—Isadora Duncan (1878–1927)